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New Delhi: OYO, a major global travel tech firm, is planning to file for an IPO (initial public offering). In this regard, the company plans to file a draft red herring prospectus (DRHP). The expected public offering aims to target a valuation ranging between $7 billion and $8 billion, said the sources familiar with the matter. This marks OYO's third attempt to launch itself in the market after filing in the years 2021 and 2023.
A company spokesperson said, "While we cannot comment on any timelines related to OYO's DRHP or IPO-related plans, since it's a decision that will be guided by OYO's Board of Directors and will be solely at their discretion. For now, OYO continues to evaluate a range of strategic options to drive value for its stakeholders." as quoted by PTI.
OYO has boasted impressive financial results. In FY25, the company boasted an EBITDA of around Rs 1100 crore. The company's CEO, Ritesh Agarwal, has forecasted Rs 1100 crore of net profit along with an EBITDA of around Rs 2000 crore for FY26. The company plans to expand its operations in US, Southeast Asia, and Middle East.
OYO had reported a net profit of Rs 623 crore in FY24, up 172 percent year-on-year. Adjusted EBITDA rose 27 percent to Rs 1,132 crore, while gross booking value surged 54 percent to Rs 16,436 crore. The operational revenue of the company grew 20 percent to Rs 6,463 crore. The company's earnings per share (EPS) tripled to Rs 0.93 from Rs 0.36 a year earlier, marking a 158 percent surge.
The board of directors of OYO includes prominent names such as former Starbucks COO Troy Alstead, IndiGo co-founder Aditya Ghosh, and SoftBank’s managing partner Sumer Juneja. SoftBank remains Oyo’s largest shareholder. The company is also in discussions with global investment banks, including Goldman Sachs, Citi, and Jefferies, to manage the IPO
"The filing with regulators is being considered for November. Over the past few months, SoftBank has engaged with banks such as Axis, Citi, Goldman Sachs, ICICI, JM Financial, and Jefferies in London to assess market sentiment. After assessing market feedback, they are now confident in their decision. The board will be approached next week as the company firms up the details and finalises key strategic elements," said one person aware of the development as quoted by PTI
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold and crypto assets.)
